ZeynakhunovaM.A., Zhumil N.
CONSOLIDATION OF REPORTING UNDER MSFO *
Аннотация:
this article is devoted to one of the pressing problems of our time, namely, the preparation of consolidated financial statements. The problem is relevant due to the fact that this is a mandatory requirement of IFRS. This type of financial reporting is created for a specific parent organization, taking into account its functioning with subsidiaries. Reporting is becoming increasingly important given widespread globalization as well as increasing international integration, as a result of which companies are expanding their geographic presence and scope. It should also be understood that reliable, high-quality financial statements are the key to successful management decisions, since they will be taken from correct data and fully reflect the dynamics of changes in various indicators of the organization
Ключевые слова:
consolidated financial statements, parent organization, IFRS, consolidation of financial statement
Consolidated financial statements are a prerequisite in the course of centralizing the financial masses. This is also necessary from the point of view of a stable increase in the number of subsidiaries and other dependent organizations and companies. In this case, the formation of the final reporting of IFRS is required [1]. Kazakhstan has extensive experience in creating consolidated financial statements. It is over ten years old. All relationships between subsidiaries and parent organizations are based on civil law. According to its characteristics, the parent and subsidiary organizations are independent from each other. This should be taken into account in financial reporting and any other activity. Another important feature is the fact that the parent company cannot be held liable for the operations of its own subsidiary [2]. Another important feature is that the company must be guided by international financial reporting standards in the preparation and presentation of consolidated financial statements. It should be noted that the procedure for the consolidation of financial statements is extremely difficult, since not all issues in this area have been resolved to date. The main problem is the insufficient methodological elaboration of most of the issues, as well as the need for better preparation of Kazakhstani organizations for the use and implementation of international reporting standards. Also, among the problems of preparing consolidated financial statements, one can single out the presence of certain differences in the accounting policies of organizations within the group, which leads to different scales and values for assessing assets, liabilities, capital, depreciation. In addition, the currently existing tools are insufficient for the practical implementation of this procedure [3]. At the moment, there is already a large number of works devoted to the problems of the consolidation of economic entities. However, despite this, a specific uniform policy has not yet been introduced and developed. For this reason, it is extremely relevant to study the content, order of compilation and methods of presenting information in financial management. Separately, it is worth highlighting the amendments made in 2013 to accounting standards: IFRS 10 "Consolidated Financial Statements" and IAS 27 "Separate Financial Statements". IFRS 10 replaces part of IAS 27 Consolidated and Separate Financial Statements. The use of this amendment was implemented to address differences from the previous version of IAS 27, which used the concept of control. Here is a comparative analysis of IAS 27 and IFRS 10 by the criterion of “definition of control”: [4]. IAS 27 - the right to govern the financial and operating policies of an entity in order to obtain benefits from its activities; According to IFRS 10, the investor has full control over the investee and related issues in this direction. Variable income is a type of income that is characterized by an unstable value, and also changes depending on the profitability of the investment object. Such income means dividends, interest, investment costs. It is also extremely important to note that if an investor possesses certain methods of control, then he must analyze certain risks associated with the dynamics of variable returns. Based on this, you can analyze the potential profit and its size. Also, when considering this category of income, one can consider the term "significant activity", that is, a complex of factors that have a significant impact on the profitability of the investment object [6]. This category can include a variety of financial and operational activities, for example, the sale of goods or services, the management of financial services, the development of new products. Based on the requirements of IFRS 10, the following stages of control analysis can be defined: 1) Identification of significant activities; 2) Determination of specific powers related to the management of the investment object; 3) Determination of the degree of influence of the investor's powers on income. It is also worth considering the main definitions according to the standards of consolidation of financial statements [7]: 1) Consolidated financial statements. 2) The Group is the parent organization and all of its subsidiaries; 3) Subsidiary - an organization managed by another organization; 4) Non-controlling interest - a portion of the capital of a subsidiary that is not owned by the parent company or is only indirectly owned. Special attention should be paid to a set of accounting requirements for the consolidation of financial statements: 1) The consolidation process begins only when the investor has full control over the investee, and ends after the loss of control over the investee. 2) When preparing consolidated financial statements, it is required to use the principles of uniform accounting policies to make adjustments to achieve compliance. Within the framework of such documentation, a wide range of factors are used that must be taken into account in the final version of the reporting. Thus, the use of consolidated reporting allows you to get the most comprehensive and accurate idea of the financial position and performance of the parent organization, as well as all organizations that are under its control, that is, the objects are considered as a single economic entity. It follows from this that it is not possible to determine the contribution of an individual subsidiary. It should be borne in mind that the process of preparing consolidated financial statements is extremely complex, which implies an urgent need for preliminary preparation. Thus, taking into account the results obtained, the author believes that the development of a unified methodology for the implementation of the consolidation process by the competent authority is required. Due to the fulfillment of all these conditions, it ensures the quality and fair presentation of the consolidated financial statements.
Номер журнала Вестник науки №5 (38) том 3
Ссылка для цитирования:
ZeynakhunovaM.A., Zhumil N. CONSOLIDATION OF REPORTING UNDER MSFO // Вестник науки №5 (38) том 3. С. 49 - 53. 2021 г. ISSN 2712-8849 // Электронный ресурс: https://www.вестник-науки.рф/article/4436 (дата обращения: 25.04.2024 г.)
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